First Capital Trust Deeds secured the financing for a self-employed real estate investor a $1,000,000 private money loan for a Lake Tahoe vacation home.
In today’s tight mortgage credit market, self-employed real estate investors are having a hard time securing low-cost conventional and jumbo financing for their properties — especially when the loan amount exceeds $1 million. This vacation home in Lake Tahoe, owned by a real estate developer from San Francisco, had an existing private money loan coming due in full for $950,000. At the same time, the borrower wanted to pull cash out of the property just in case one of their two development projects back in the city went over budget or experienced delays.
Because the home was worth well over $2 million, FCTD was able to secure a private money lending fund that could close within a week. The key issues for the borrower was how much of a cash out they’d give him and what it would cost to do it. Out of the three offers presented to the borrower, they chose a private money loan that offered the best combination of $500,000 cash out, low closing costs, and a 9.99% over 24 months.
Private Money Loan Terms:
- $1,450,000 Loan Amount (50% LTV)
- 9.99% Interest-Only
- 24-Month Term
- No Prepayment Penalty